An Explanation of the 3 Main Types of Odds Found in Sports Betting
Remember odds are just an opinion set by a bookmaker on the chances of an event occurring. These are expressed numerically. World-wide there are three main ways of expressing these odds figures. We are not restricted by geographical boundaries, sports betting is a global business. Lets call these different types of odds the UK way, the European way and the US way.
UK or fractional odds.
These are known as fractional odds because they are expressed as two figures like a fraction. The example above with Henman and Hewitt used fractional odds. Here are some examples: 10/1, 6/4, 4/6 and 1/3. If we were speaking these odds we would say ten to one, six to four, four to six on and three to one on. Lets take each example in turn:
10/1. As with all fractional odds the first or top figure is your profit and the second or bottom figure is the amount you need to stake to make that profit. So for a profit of 10 units we need to stake 1 unit. If we stake $1 we would make a profit of $10, assuming we won. Note we would also get our stake of $1 back. So we would have $11 returned, which is a profit of $10 as we had given the bookmaker $1 as our stake money. If we staked $100, we would make a profit of $1000.
6/4. Again, our stake is the second or bottom figure, lets say $4 and our profit is the first or top figure which would be $6. $10 would be returned but this includes our $4 stake and so our profit is $6. If we staked $100 we would make a profit of $150 (100 x 6 divided by 4).
4/6. This is known as odds on. Note the profit we will achieve is actually lower than the stake we are placing. This is inevitable because this outcome is likely, its greater than 50%. But the principle is the same our profit would be $4 for a stake of $6. We would have A�10 returned to us but this would include our $6 stake.
1/3. Again we are 'odds on' here with the profit being less than the amount staked. But the second or bottom figure is the stake of $3 and the first or top figure is the profit of $1. We would have had $4 returned but $3 was out original stake so our profit was $1.
With all these examples we can stake what we like. The returns are proportionate to our stake.
European or decimal odds.
These are much more logical really and are expressed as a decimal. They are widely used in Europe and most bookmaker sites will allow you to see the odds in this format. Here are some examples, 2.50, 3.00, 4.50, 1.50. The main thing to remember is that the returns include your stake money. So for a decimal of 2.50 a A�1 stake would return A�2.50. This however includes you A�1 stake.
A decimal of 3.00 would return $3 for a $1 stake and again includes the $1 stake so is actually a profit of $2. A decimal of 4.50 means a return of $4.50 for a $1 stake but the profit is only $3.50 as again the return includes the $1 stake. A decimal of 1.50 means a return of $1.50 for a $1 stake but the profit is only $0.50 as again the return includes the $1 stake. If we were comparing this with fractional odds this would be known as 2 to 1 on expressed as 1/2.
Clearly a decimal odd of 4.00 returns $4, $3 of which is profit. This would equate to a fractional odd of 3/1 which also returns a $3 profit. The rule is if the decimal is say 4.00 subtract one for the fractional equivalent which would be 3/1. Therefore 2.0 is equivalent to evens in fractional odds terms.
The nice thing about decimal odds is that they are easier to understand and there are greater degrees of odds available as compared to fractional odds.
US linear odds.
These are a different method totally and frankly are a little quirky but still relatively easy to understand after a little practice. Some examples are as follows. +200, +400, -200, -300. Firstly they assume a base figure of 100 and the sign is vitally important. If the odds were +200 then a stake of 100 would return a profit of 200 plus your stake money back. If the odds were +400 then a stake of 100 would return a profit of 400 plus your 100 stake money.
When the odds are expressed as a minus figure this is the amount you need to stake to win 100. Effectively this is the 'odds on' side of the coin. -200 would mean we need to stake 200 to win 100 with our stake also returned. -300 would mean we needed to stake 300 to make a profit of 100 with our 300 stake returned.
In terms of fractional odds +200 would be the same as 2/1, +400 would be the same as 4/1, -200 would be the same as 1 /2 and -300 would be the same as 1/3.
In the next chapter is a chart which works out the comparison between the three different types of odds. It also shows in the right hand column the percentage figure that will relate to the stake you will need to place on the bet.
It is important you familiarise yourself with the different methods of calculating odds. Personally the European decimal odds are the easiest to understand and as stated previously they offer the bookmaker the opportunity to offer greater degrees of odds.
Remember odds are just an opinion set by a bookmaker on the chances of an event occurring. These are expressed numerically. World-wide there are three main ways of expressing these odds figures. We are not restricted by geographical boundaries, sports betting is a global business. Lets call these different types of odds the UK way, the European way and the US way.
UK or fractional odds.
These are known as fractional odds because they are expressed as two figures like a fraction. The example above with Henman and Hewitt used fractional odds. Here are some examples: 10/1, 6/4, 4/6 and 1/3. If we were speaking these odds we would say ten to one, six to four, four to six on and three to one on. Lets take each example in turn:
10/1. As with all fractional odds the first or top figure is your profit and the second or bottom figure is the amount you need to stake to make that profit. So for a profit of 10 units we need to stake 1 unit. If we stake $1 we would make a profit of $10, assuming we won. Note we would also get our stake of $1 back. So we would have $11 returned, which is a profit of $10 as we had given the bookmaker $1 as our stake money. If we staked $100, we would make a profit of $1000.
6/4. Again, our stake is the second or bottom figure, lets say $4 and our profit is the first or top figure which would be $6. $10 would be returned but this includes our $4 stake and so our profit is $6. If we staked $100 we would make a profit of $150 (100 x 6 divided by 4).
4/6. This is known as odds on. Note the profit we will achieve is actually lower than the stake we are placing. This is inevitable because this outcome is likely, its greater than 50%. But the principle is the same our profit would be $4 for a stake of $6. We would have A�10 returned to us but this would include our $6 stake.
1/3. Again we are 'odds on' here with the profit being less than the amount staked. But the second or bottom figure is the stake of $3 and the first or top figure is the profit of $1. We would have had $4 returned but $3 was out original stake so our profit was $1.
With all these examples we can stake what we like. The returns are proportionate to our stake.
European or decimal odds.
These are much more logical really and are expressed as a decimal. They are widely used in Europe and most bookmaker sites will allow you to see the odds in this format. Here are some examples, 2.50, 3.00, 4.50, 1.50. The main thing to remember is that the returns include your stake money. So for a decimal of 2.50 a A�1 stake would return A�2.50. This however includes you A�1 stake.
A decimal of 3.00 would return $3 for a $1 stake and again includes the $1 stake so is actually a profit of $2. A decimal of 4.50 means a return of $4.50 for a $1 stake but the profit is only $3.50 as again the return includes the $1 stake. A decimal of 1.50 means a return of $1.50 for a $1 stake but the profit is only $0.50 as again the return includes the $1 stake. If we were comparing this with fractional odds this would be known as 2 to 1 on expressed as 1/2.
Clearly a decimal odd of 4.00 returns $4, $3 of which is profit. This would equate to a fractional odd of 3/1 which also returns a $3 profit. The rule is if the decimal is say 4.00 subtract one for the fractional equivalent which would be 3/1. Therefore 2.0 is equivalent to evens in fractional odds terms.
The nice thing about decimal odds is that they are easier to understand and there are greater degrees of odds available as compared to fractional odds.
US linear odds.
These are a different method totally and frankly are a little quirky but still relatively easy to understand after a little practice. Some examples are as follows. +200, +400, -200, -300. Firstly they assume a base figure of 100 and the sign is vitally important. If the odds were +200 then a stake of 100 would return a profit of 200 plus your stake money back. If the odds were +400 then a stake of 100 would return a profit of 400 plus your 100 stake money.
When the odds are expressed as a minus figure this is the amount you need to stake to win 100. Effectively this is the 'odds on' side of the coin. -200 would mean we need to stake 200 to win 100 with our stake also returned. -300 would mean we needed to stake 300 to make a profit of 100 with our 300 stake returned.
In terms of fractional odds +200 would be the same as 2/1, +400 would be the same as 4/1, -200 would be the same as 1 /2 and -300 would be the same as 1/3.
In the next chapter is a chart which works out the comparison between the three different types of odds. It also shows in the right hand column the percentage figure that will relate to the stake you will need to place on the bet.
It is important you familiarise yourself with the different methods of calculating odds. Personally the European decimal odds are the easiest to understand and as stated previously they offer the bookmaker the opportunity to offer greater degrees of odds.
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